Frequently asked questions

What is the strategy of Euro Asia Group?
Euro Asia is a developer of real estate projects, predominantly in the city of Weifang, in China's second most populous province, Shandong. Weifang is a third-tier city with a population of 8.5 million people and a vibrant economy. Through its close ties with SNI, the Company has unrivalled access to premium land for development, focusing on commercial and residential developments, generally as part of government-driven urban renewal initiatives. This access, and a well-established network that allows for speedy navigation through permitting processes, make Euro Asia a very interesting partner for other developers, who generally do not have this level of access nor the strength-of-network, especially if they are not based in Weifang themselves. The Company leverages this strength, allowing for low-risk project structures, in which either pre-sales agreements provide the cash required for development, or where JV's are formed in which the partner carries all the development costs and pays a premium for access to the land. In this way, Euro Asia accelerates cash flow generation, which in turn is used to fund further projects. Euro Asia looks to achieve a net cash return on investment in excess of 35 percent.

Does Euro Asia focus on a specific region?
The Company prioritizes to grow its position in the Shandong Province prior to moving into other regions, but it is open to take opportunities outside of Weifang and Shandong, when they arise.

Does Euro Asia focus on a specific sector?
We have a dual-focused approach, targeting both high-end commercial properties and mid-to-high-end residential properties.

Why does Euro Asia focus on third-tier locations?
The management tries to avoid the risks naturally associated with speculative developments in boom-cities like Beijing or Shanghai. At the same time, the company wants to gain profit out of the growing demand for developed space in cities like Weifang, with it's population of 8.5 million.

Why did Euro Asia go public outside of China?
Being listed on the German market offers us, as a Chinese company, a number of advantages. By complying to the listing rules, we create a transparent and open dialogue with the investment community that makes us attractive to non Chinese investors. Some 34 Chinese companies are listed in Germany. Combined with the relatively high growth figures this economy has become associated with, creates a healthy interest in companies from China, which gives us a relatively high visibility towards foreign investors. This all makes our cost of capital relatively low and allows us to pursue our corporate strategy to an extent we feel would be more difficult by being listed on a Chinese stock exchange. Furthermore, being listed in Germany gives us extra standing in our home market, which strengthens our commercial position on the Weifang market.

Copyright ©MMXI Euro Asia Premier Real Estate Company Limited. All rights reserved.
Not for distribution in the United States of America.